Has There Ever Been a Better Time to be a Landlord? 1st Apr 2015Has there ever been a better time to be a Landlord?
Recent reports show that average rents in Scotland are continuing to grow to record highs as demand outstrips supply. Citylets reveal rents are up 7.9% on last year across Scotland, whereas HomeLet has it as 9.4%.
Overall, rental is buoyant, with attitudes to rental shifting dramatically over the last few years. We are now a society where rental has become a necessary and acceptable norm. Initially driven by buyers struggling to get on the housing market, an increasing number of others have jumped on the rental bandwagon, enjoying the benefits of not being tied into a mortgage, the flexibility that rental offers, and having someone else being responsible for repairs as they arise.
The 2013 results for the Scottish Household Survey show that households renting have more than doubled over the last 10 years, with 13% of all households renting from private landlords, compared to 6% of all households ten years prior. Edinburgh has the highest number of households privately renting. Structural changes in the property market mean this is a permanent change.
Furthermore, the latest findings from the Landlords Panel reveal that landlords’ confidence is back to pre-credit crunch levels, with the incidence of rental arrears and void periods at a post-credit crunch low. The average annual void period (the length of time between rental property tenancies) dropped to 2.4 weeks in early 2015, its lowest level since the Paragon Mortgages void survey began in 2002. Landlords have been reporting low or falling void periods since 2013.
Also the Landlords Panel found that more than 8 in 10 landlords claim that they are making a profit from their lettings activity, with a quarter of these able to make it their full time living. And there could be better to come, as the majority of landlords report seeing a trend for increasing rents in the areas where they operate.
However changes may be afoot, with growing political interests in rent control, and removing the landlord’s right to end the tenancy at the end of the agreed lease period. Industry lead bodies are campaigning on behalf of landlords to ensure fairness within the private rented sector, in order to maintain investment within the area. Read our article on Proposed Changes to the Private Rented Sector to find out more.
And so, genuinely, has there ever been a better time to be a Landlord? Huge demand for rental properties in the private rented sector sector; high and increasing rents; rental arrears and voids at an all time low.
So what's stopping you? The Key Place can help can source high yield properties, find the best mortgage, complete the acquisition and fully manage your investment.